out of reach 2016

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No Refuge

for Low

Income

Renters

Made Possible By The Generosity Of:

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NATIONAL LOW INCOME HOUSING COALITION • OUT OF REACH 2016

NLIHC STAFFMalik Siraj Akbar Communications SpecialistAndrew Aurand Vice President for ResearchJosephine Clarke Executive AssistantDan Emmanuel Research AnalystEllen Errico Graphic Design and Web Manager Ed Gramlich Senior Advisor Sarah Jemison Housing Advocacy Organizer

Paul Kealey Chief Operating Ofcer Joseph Lindstrom Senior Organizer for Housing AdvocacyKhara Norris Director of AdministrationJames Saucedo Housing Advocacy Organizer Christina Sin Development Coordinator Elayne Weiss Policy AnalystRenee Willis Vice President for Field and CommunicationsDiane Yentel President and CEO

NLIHC BOARD OF DIRECTORS

Established in 1974 by Cushing N. Dolbeare, theNational Low Income Housing Coalition is dedicatedsolely to achieving socially just public policy that assurespeople with the lowest incomes in the United Stateshave affordable and decent homes. NLIHC educates,organizes, and advocates to ensure decent, affordablehousing within healthy neighborhoods for everyone.

NLIHC provides up-to-date information, formulatespolicy, and educates the public on housing needsand the strategies for solutions. Permission to reprintportions of this report or the data therein is granted,provided appropriate credit is given to the National LowIncome Housing Coalition. Additional copies of Out ofReach are available from NLIHC.

The data for nonmetropolitan areas included in Out ofReach are published in collaboration with the Housing

Assistance Council.

Out of Reach 2016 Was Made Possible byThe Generous Support of J.P. Morgan Chase.

1000 Vermont Avenue, NW, Suite 500Washington, DC 20005

(Phone) 202.662.1530 | (Fax) 202.393.1973WWW.NLIHC.ORG

Brenda J. Clement, Chair ,Boston, MA

Christine Allamanno, Saint Petersburg,FL

William C. Apgar, Orleans, MADara Baldwin, Washington, DCDavid Bowers, Washington, DCDelorise Calhoun, Cincinnati, OHEmma “Pinky” Clifford, Pine Ridge, SD

Lot Diaz, Washington, DCChris Estes, Washington, DCBill Faith (Honorary), Columbus, OHDaisy Franklin, Norwalk, CTDora Leong Gallo, Los Angeles, CAMatt Gerard, Minneapolis, MN

Deidre “DeeDee” Gilmore,Charlottesville, VA

Lisa Hasegawa, Washington, DCIsabelle Headrick, Austin, TXMoises Loza (Honorary), Washington,

DCRachael Myers, Seattle, WAMarla Newman, Baton Rouge, LAAnn O’Hara, Boston, MA

Robert Palmer, Chicago, ILGreg Payne, Portland, MEEric Price, Washington, DCTara Rollins, Salt Lake City, UTMichael Steele, New York, NY Martha Weatherspoon, Clarksville, TN

Design and Layout by Ellen Errico

http://www.nlihc.org/http://www.nlihc.org/

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NATIONAL LOW INCOME HOUSING COALITION • OUT OF REACH 2016

OUT OF REACHDIANE YENTEL, MSWPresident and CEO

ANDREW AURAND, PH.D., MSW Vice President for Research

DAN EMMANUEL, MSW Research Analyst

ELLEN ERRICO Graphic Design & Web Manager

GAR MENG LEONG Research Intern

KATE RODRIGUES Research Intern

WWW.NLIHC.ORG/OORCopyright © 2016 by the National Low Income Housing Coalition

mailto:[email protected]:researchintern1%40nlihc.org?subject=http://www.nlihc.org/oorhttp://www.nlihc.org/oormailto:researchintern1%40nlihc.org?subject=mailto:[email protected]

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NATIONAL LOW INCOME HOUSING COALITION • OUT OF REACH 2016 i

OUT OF REACHPREFACE. . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . 1

USER’S GUIDE

How to Use the Numbers . . . . . . . . . . . . . . . . . . . . 8

Where the Numbers Come From . . . . . . . . . . . . . . . . 9

TABLES AND MAPS

2016 Most Expensive Jurisdictions . . . . . . . . . . . . . . 10

2016 States Ranked by Two-Bedroom Housing Wage. . . . . 11

2016 Two-Bedroom Rental Unit Housing Wage . . . . . . . . 12

2016 Hours at Minimum Wage Needed to Afford Rent . . . . 13

State Summary . . . . . . . . . . . . . . . . . . . . . . . . . 14

STATE PAGES

Alabama . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Alaska . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Arizona . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Arkansas . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

California . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Colorado . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Connecticut . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Delaware . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

District of Columbia . . . . . . . . . . . . . . . . . . . . . . 47

Florida . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Georgia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Hawaii . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Idaho . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Indiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Iowa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Kansas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Kentucky . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Louisiana . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

Maine. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Maryland . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

Massachusetts . . . . . . . . . . . . . . . . . . . . . . . . . 110

Table of Contents

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NATIONAL LOW INCOME HOUSING COALITION • OUT OF REACH 2016 ii

Michigan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

Mississippi . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

Montana . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

Nebraska . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

Nevada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

New Hampshire . . . . . . . . . . . . . . . . . . . . . . . . 149

New Jersey. . . . . . . . . . . . . . . . . . . . . . . . . . . 153

New Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . 156

New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . 163

North Dakota. . . . . . . . . . . . . . . . . . . . . . . . . . 169

Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

Oklahoma . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183

Pennsylvania . . . . . . . . . . . . . . . . . . . . . . . . . . 186

Puerto Rico . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

Rhode Island . . . . . . . . . . . . . . . . . . . . . . . . . . 196

South Carolina . . . . . . . . . . . . . . . . . . . . . . . . . 199

South Dakota. . . . . . . . . . . . . . . . . . . . . . . . . . 203

Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . 207

Texas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213

Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225

Vermont . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228

Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231

Washington . . . . . . . . . . . . . . . . . . . . . . . . . . 238

West Virginia . . . . . . . . . . . . . . . . . . . . . . . . . . 242

Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . 246

Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251

APPENDICES

Appendix A:Data Notes, Methodologies, and Sources . . . . . . . . . . . 254

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NATIONAL LOW INCOME HOUSING COALITION • OUT OF REACH 2016 iii

PREFACE BY JULIÁN CASTRO,SECRETARY OF THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Nearly a century ago, President Theodore Roosevelt became the nation’sfirst chief executive to propose federal investment to create housing

specifically for low-income Americans. It was a monumental step inthe long march toward ensuring that a decent, affordable home is availableto every citizen. And it spoke to a fundamental truth that haslong been at the heart of the National Low Income HousingCoalition’s (NLIHC) work: Our nation can’t fulfill any of ourmajor goals — whether it’s tackling inequality, improvinghealthcare, keeping neighborhoods safe, or making sureevery child gets a good education — unless we also focuson housing. That is because housing is one of the mostbasic needs we have, a need that is as much about how

we live as about where we live.In the years since President Roosevelt’s bold stand,we’ve come together, time and again, to expandthe promise of a good home to more families. Wedid that through the creation of the Federal Housing Administration and by building public housing as part ofPresident Franklin Roosevelt’s New Deal. We did it throughthe passage of the Fair Housing Act in 1968, which continuesto help foster a housing market that is free from discrimination. Wedid it in the 1990s, when we invested new resources to help strengthen ruraland urban communities and expand affordable housing across the nation. And,under President Barack Obama’s leadership, we’ve done that over the last sevenyears by supporting our housing market’s recovery, preserving public housing, joining forces with states, cities, towns, and tribal communities to help endhomelessness, and fighting to make our rental market more affordable.

We’ve achieved a lot together. But as the report you’re about to read shows, wehave a lot of work to do to realize our shared vision of a secure home for every American. Today, there is a shortage of 7.2 million affordable housing units forthe nation’s more than 10 million extremely low-income families. It’s a crisis thatis making it ever harder for families to find housing and forcing many people tochoose between doubling up in a friend’s apartment or sleeping in their car. As

difficult as it can be to find a home, keeping that home can be just as daunting.

Three-quarters of extremely low-income families pay morethan half of their income just to keep a roof over their heads,

leaving less money for food, child care, transportation, andso many other basic necessities.

And it’s not just people of very modest meanswho are working harder to make ends

meet. Last year, rising rents in a numberof cities outpaced the rate of inflation,

which is hurting low- and moderate-income Americans. I learned of oneSan Jose family in which both parents worked full-time but the only place they could afford was at a local

homeless shelter. The crisis is also affecting seniors,many of whom live on fixed incomes. Today, HUD is

only able to serve one out of every three seniors whoneeds our help. And Harvard’s Joint Center for Housing

Studies calculated that as our nation ages, HUD wouldneed to provide housing support for an additional 900,000

seniors just to keep pace between now and 2030.

Tackling our affordability crisis isn’t just the right thing to do — it’salso one of the best ways we can invest in our nation’s long term growth

and competitiveness. That is the message from this year’s Out of Reach report.

This report confirms that investing in affordable housing — as HUD is doing byproviding annual housing support for nearly 5.5 million households and throughthe new national Housing Trust Fund, as part of innovative efforts like the Rental Assistance Demonstration, and with incentives like the Low Income Housing TaxCredit — is one of the most important steps we can take to help people succeedtoday, and live healthier lives long into the future.

I urge everyone who’s moved by what you read here to join us in the cause ofensuring that every American has the opportunity to secure a decent home in aneighborhood of promise. That is the vision we’ve been fighting to realize fornearly a century. Let’s accomplish it for every family in this 21st century and

beyond.

HUD Secretary

Julián Castro

LAST YEAR,RISING RENTS IN

A NUMBER OF CITIESOUTPACED THE RATEOF INFLATION, WHICHIS HURTING LOW- ANDMODERATE-INCOME

AMERICANS.

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NATIONAL LOW INCOME HOUSING COALITION • OUT OF REACH 2016 1

NLIHC’s annual report, Out of Reach,

documents the gap between wages and

the price of housing across the United

States. The report’s Housing Wage is an estimate

of the hourly wage that a full-time worker must

earn to afford a modest and safe

rental home without spending

more than 30% of his or

her income on rent and

utility costs. This year’s

findings highlight the

struggle faced by

millions of families

in affording a safe

and decent home. Wage stagnation,

particularly

among lower wage

workers, rising rents,

and an inadequate

supply of affordable

housing continue to

present significant challenges.

In 2016, the national Housing Wage

is $20.30 for a two-bedroom rental unit and$16.35 for a one-bedroom rental unit. A

worker earning the federal minimum wage of

$7.25 per hour would need to work 2.8 full time

jobs, or approximately 112 hours per week for

all 52 weeks of the year, in order to afford a two-

bedroom apartment at HUD’s Fair Market Rent

(FMR). If this worker slept for eight hours per

night, he or she would have no remaining time

during the week for anything other than working

and sleeping.

Twenty-nine states, the District of Columbia,

and a small number of local jurisdictions have

a minimum wage higher than the federal level.

However, in no state, metropolitan area,

or county can a full-time worker earning

the prevailing minimum wage

afford a modest two-bedroom

apartment. In only twelve

counties and one

metropolitan area is the

prevailing minimum

wage sufficient to

afford a modest

one-bedroom

apartment.

1

Localminimum wages

higher than the

prevailing federal

or state levels still

fall short of the local

one-bedroom and two-

bedroom housing wage

(Table 1).

The struggle to afford a decent home

isn’t limited to minimum wage workers. Theaverage hourly wage of renters in the U.S.

is $15.42, $4.88 less than the two-bedroom

Housing Wage. In many states, the gap between

the mean renter wage and the Housing Wage

is significant (Figure 1). In no state is the mean

renter wage sufficient to afford a two-bedroom

apartment at the FMR.

The lowest income households face the

1 All of them are located in West Virginia and WashingtonState.

INTRODUCTION

IN NO STATE,METROPOLITAN AREA, OR

COUNTY CAN AFULL-TIME WORKER EARNING

THE PREVAILING MINIMUMWAGE AFFORD A MODEST

TWO-BEDROOM APARTMENT.

DEFINITIONS Affordability in this report is consistentwith the federal standard that no more

than 30% of a household’s gross income

should be spent on rent and utilities. Households

paying over 30% of their income are considered cost

burdened. Households paying over 50% of their

income are considered severely cost burdened.

Area Median Income (AMI) is used to determineincome eligibility for affordable housing programs.

The AMI is set according to family size and varies by

region.

Extremely Low Income (ELI) refers to earningless than 30% of AMI.

Housing Wage is the estimated full-time hourly

wage a household must earn to afford a decentrental unit at HUD-estimated Fair Market Rent while

spending no more than 30% of their income on

housing costs.

Full-time work is defined as 2,080 hours per year(40 hours each week for 52 weeks). The average

employee works roughly 34.4 hours per week,

according to the Bureau of Labor Statistics.

Fair Market Rent (FMR) is typically the 40th

percentile of gross rents for standard rental units.FMRs are determined by HUD on an annual basis,

and reflect the cost of shelter and utilities. FMRs are

used to determine payment standards for the Housing

Choice Voucher program and Section 8 contracts.

Renter wage is the estimated mean hourly wageamong renters, based on 2014 Bureau of Labor

Statistics wage data, adjusted by the ratio of renter

income to the overall household income reported in

the ACS and projected to 2016.

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greatest housing affordability challenges (Figure

2). Extremely low income (ELI) households have

income at or below 30% of their area median. On

average, they can afford to spend no more than $507

per month on housing costs. An individual relying

on Supplemental Security Income (SSI) in 2016 can

only afford monthly rent of $220. Meanwhile, the

national average monthly rent for a modest one-bedroom apartment is $850. The national average

cost of a modest one-bedroom apartment would

consume more than a single SSI recipient’s entire

income. Such an individual would be unable to

maintain shelter without housing assistance.

Out of Reach 2016 clearly indicates that renters,

particularly those with the lowest incomes, face

significant affordability barriers in securing safe,

decent, affordable homes. The next two sections

explore two causes of this affordability crisis and

how a new federal housing program, the national

Housing Trust Fund (HTF), can help address it.

Wage Stagnation andIncome Inequality Wage stagnation and income inequality contribute

to the gap between what people earn and the cost of

their housing. From 2007 to 2015, the bottom 10%

of wage earners saw a 0.2% increase in real hourlywages, while the top 5% saw an 8.7% increase,2

continuing a long-term trend of growing income

equality. Between 1979 and 2013, the bottom 10%

of wage earners saw a 5.3% decline in real hourly

wages, while the top 5% saw a 40.6% increase.3

2 Gould, E. (2016). Wage inequality continued its 35-year rise in2015. Washington, DC: Economic Policy Institute. Retrievedfrom http://www.epi.org/publication/wage-inequality-continued-its-35-year-rise-in-2015/#epi-toc-3.

3 Mishel, L., Gould, E., & Bivens, J. (2015). Wage stagnation in nine

charts. Washington, DC: Economic Policy Institute. Retrievedfrom: http://www.epi.org/publication/charting-wage-stagnation/ .

TABLE 1: MINIMUM-WAGE WORKERS IN LOCALITIES WITH A HIGHERMINIMUM-WAGE STILL EARN LESS THAN THE HOUSING WAGE

Locality Local Minimum-Wage 1 BR Housing Wage 2 BR Housing Wage

Berkeley, CA $11.00 $31.98 $40.44

Bernalillo County, NM $8.50 $14.75 $18.10Chicago, IL $10.00 $19.25 $22.62

Emeryville, CA $14.44 $31.98 $40.44

Johnson County, IA $8.20 $12.79 $16.60

Las Cruces, NM $8.40 $10.40 $12.69

Louisville, KY $7.75 $12.38 $15.71

Montgomery County, MD $9.55 $26.96 $31.21

Mountain View, CA $11.00 $30.42 $38.35

Oakland, CA $12.25 $31.98 $40.44

Palo Alto, CA $11.00 $30.42 $38.35

Portland, ME $10.10 $17.04 $21.33

Prince George’s County, MD $9.55 $26.96 $31.21

Richmond, CA $11.52 $31.98 $40.44

San Diego, CA $10.50 $22.17 $28.83

San Francisco, CA $12.25 $34.88 $44.02

Santa Clara, CA $11.00 $30.42 $38.35

Santa Fe, NM $9.50 $15.04 $18.13

Santa Fe County, NM $10.66 $15.04 $18.13

Seattle, WA $13.00 $23.56 $29.29

Sunnyvale, CA $10.30 $30.42 $38.35

Tacoma, WA $10.35 $16.79 $21.65

Notes on Table:

1. Local minimum wage amounts used in this chart are as of March 1, 2016 and come from the U.C. Berkeley Labor Center’s Inven-tory of U.S. City and County Minimum Wage Ordinances.

2. Housing Wages in this chart refer to the jurisdiction’s corresponding FMR area.

http://www.epi.org/publication/charting-wage-stagnation/http://www.epi.org/publication/charting-wage-stagnation/

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$ 3 4 .

2 2

$ 2 6 .

5 3

$ 2 6 .

5 2

$ 2 8 .

5 9

$ 2 4 .

7 2

$ 2 1 . 1

3 $ 2 5 .

9 1

$ 2 1 .

0 9

$ 1 7 .

0 4

$ 1 9 .

0 6

$ 1 4 .

5 3

$ 1 5 .

9 1

$ 1 6 .

9 8

$ 1 9 .

2 2

$ 1 6 .

2 1

$

1 1 .

7 9

$ 1 8 .

4 7

$ 1 4 .

0 8

$ 1 0 .

3 6

$ 1 2 .

5 9

$0.00

$10.00

$20.00

$30.00

$40.00

Hawaii Maryland New Jersey Ca lifornia Connecticut Vermont Massachusetts New Hampshire Maine Rhode Is land

Two-Bedroom Housing Wage Renter Wage

FIGURE 1: STATES WITH THE LARGEST SHORTFALL BETWEEN TWO BEDROOM HOUSING WAGEAND RENTER WAGE

An analysis by the Brookings Institution found that cities with greater income inequality tend to have lower housing affordability for low income households.4

Greater income inequality was associated with greater housing cost burdens among the poorest 20% of households. Household income at the 95th percentile of

the income distribution correlated positively with housing costs at the bottom 20% of the rental market. These findings suggest that housing markets are more

responsive to the demand for rental housing among higher income households than to the housing needs of lower income households.

4 Berube, A., & Holmes, N. (2016). City and metropolitan inequality on the rise, driven by declining incomes. Retrieved from http://www.brookings.edu/research/papers/2016/01/14-income-inequality-cities-update-berube-holmes.

http://www.brookings.edu/research/papers/2016/01/14-income-inequality-cities-update-berube-holmeshttp://www.brookings.edu/research/papers/2016/01/14-income-inequality-cities-update-berube-holmeshttp://www.brookings.edu/research/papers/2016/01/14-income-inequality-cities-update-berube-holmeshttp://www.brookings.edu/research/papers/2016/01/14-income-inequality-cities-update-berube-holmes

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The declining inflation-adjusted value of the

federal minimum wage contributes to wage

inequality5 and the housing affordability challenges

faced by low wage workers. Local, state, and

national efforts to increase the minimum wage are

critical, but on their own will not completely close

the housing affordability gap. At least twenty-

two local jurisdictions now have a minimum

wage higher than their prevailing state or federal

level. All fall short of the one-bedroom and two-

bedroom Housing Wage (Table 1). Minimum wage

legislation introduced in Congress also falls short.

The Pay Workers a Living Wage Act (S.1832 /

H.R. 3164) would raise the minimum wage to $15

an hour, $1.35 and $5.30 short of the national

one-bedroom and two-bedroom Housing Wage. A

separate bill, the Original Living Wage Act (H.R.

122), would set the federal minimum wage at

115% of the federal poverty threshold for a family

5 Economic Policy Institute (2015). A stagnating minimum wagehas left low-wage workers facing a longer climb to reach the middleclass. Washington DC: Author. Retrieved from: http://www.epi.

org/publication/a-stagnating-minimum-wage-has-left-low-wage-workers-facing-a-longer-climb-to-reach-the-middle-class

of four with two children, assuming full-time

employment. In 2015, the minimum wage under

this legislation would be $13.29.

Rising Rents and theInadequate Supply ofAffordable HousingThe demand for rental housing is at its highest

level since the 1960s.6 In the past decade

alone, the U.S. has added nine million renter

households, but only 8.2 million rental housingunits to its housing stock. Vacancy rates are at

their lowest levels since 1985 and rents have risen

at an annual rate of 3.5%, the fastest pace in three

decades.7

6 Joint Center for Housing Studies of Harvard University. (2015). America’s rental housing: Expanding options for diverse and growingdemand. Cambridge, MA: Author. http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ctools/css/americas_rental_housing_2015_web.pdf .

7 Ibid.

FIGURE 2: RENTS REMAIN OUT OF REACH FOR MANY RENTERS

$220Rent Affordable to a Household Relying on SSI

$377Rent Affordable to a Household with One Full-Time

Worker Earning the Federal Minimum Wage

$507Rent Affordable to an Extremely Low

Income Household (30% AMI)

$8502016 One-Bedroom FMR

$1,0562016 Two-Bedroom FMR

Growth in the supply of low cost rental units

has not kept pace with the significant growth in

demand. Between 2003 and 2013, the number of

low cost units renting for less than $400 increased

by 10%, but the number of renter households

in need of these units increased by 40%.8 The

nation’s 10.4 million ELI renter households

currently face a shortage of 7.2 million affordableand available rental units, leaving 31 affordable

and available units for every 100 ELI renter

households.9 Unable to find affordable homes,

seventy-five percent of ELI renter households are

now severely cost burdened, spending more than

half of their income on rent and utilities.10 This

burden makes it difficult to afford other basic

necessities like healthy food and medication and

to save for financial emergencies. Severe cost

burden is a risk factor for housing instability andhomelessness, which exacerbates the financial

and psychological stress within a family. Very

low income (VLI) renter households earning no

more than 50% of their area median income face

a similar shortage of 57 affordable and available

units for every 100 VLI renter households.11

Absent public subsidy, the private market does

little to produce new rental housing affordable

to the lowest income households. The rent these

households can afford to pay often does not cover

debt service on the capital costs of development

and other operating expenses. Because of high

8 Ibid.

9 Affordable and available homes are affordable to a particularincome group and either vacant or occupied by a household ofthat income group.

10 National Low Income Housing Coalition. (2016). The gap: Theaffordable housing gap analysis 2016. Washington, DC: Author.Retrieved from http://nlihc.org/sites/default/files/Gap-Report_print.pdf .

11 Ibid.

http://www.epi.org/publication/a-stagnating-minimum-wage-has-left-low-wage-workers-facing-a-longer-climb-to-reach-the-middle-classhttp://www.epi.org/publication/a-stagnating-minimum-wage-has-left-low-wage-workers-facing-a-longer-climb-to-reach-the-middle-classhttp://www.epi.org/publication/a-stagnating-minimum-wage-has-left-low-wage-workers-facing-a-longer-climb-to-reach-the-middle-classhttp://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ctools/css/americas_rental_housing_2015_web.pdfhttp://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ctools/css/americas_rental_housing_2015_web.pdfhttp://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ctools/css/americas_rental_housing_2015_web.pdfhttp://nlihc.org/sites/default/files/Gap-Report_print.pdfhttp://nlihc.org/sites/default/files/Gap-Report_print.pdfhttp://nlihc.org/sites/default/files/Gap-Report_print.pdfhttp://nlihc.org/sites/default/files/Gap-Report_print.pdfhttp://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ctools/css/americas_rental_housing_2015_web.pdfhttp://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ctools/css/americas_rental_housing_2015_web.pdfhttp://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/ctools/css/americas_rental_housing_2015_web.pdfhttp://www.epi.org/publication/a-stagnating-minimum-wage-has-left-low-wage-workers-facing-a-longer-climb-to-reach-the-middle-classhttp://www.epi.org/publication/a-stagnating-minimum-wage-has-left-low-wage-workers-facing-a-longer-climb-to-reach-the-middle-classhttp://www.epi.org/publication/a-stagnating-minimum-wage-has-left-low-wage-workers-facing-a-longer-climb-to-reach-the-middle-class

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development costs, developers target new rental units to the upper end of the

rental market where rents are higher.

Nearly three-quarters of the rental housing occupied by households in the

bottom three-fifths of the U.S. income distribution is the result of downward

filtering of housing units as they become older and less desirable relative to

new housing.12 Older housing of adequate quality however rarely becomes

cheap enough for ELI renters. In high demand housing markets, owners have

an incentive to upgrade their units for higher rents. In weak markets,

owners have an incentive to no longer maintain their property

when rent revenue does not cover operating costs.

The Housing Trust FundIn addition to raising the minimum wage, public

investments in housing programs are essential to

address the shortage of rental housing affordable

and available to ELI and VLI households. One

new and promising tool for addressing thisshortage is the national Housing Trust Fund

(HTF).

The HTF is the first new federal housing program

in a generation to focus on ELI households. It

will receive a first time allocation of nearly $173.6

million in the summer of 2016 for distribution to the

50 states and the District of Columbia. At least 90% of

HTF funds must be used to build, preserve, or rehabilitate

rental housing affordable to ELI and VLI households. A maximum often percent of HTF funds can be used for affordable homeownership activities.

At least 75% of funds must benefit ELI households, and up to 25% can benefit

VLI households. While the HTF is capitalized under $1 billion, all funds must

benefit ELI households.

The HTF is funded through a dedicated source of revenue outside of the

annual appropriations process. The dedicated revenue source is a 4.2 basis

point (0.042%) assessment on the new business of Fannie Mae and Freddie

12 McCarthy, J., Peach, R., & Ploenzke, M. (2015). The measurement of rent inflation. New York, NY:

Federal Reserve Bank of New York. https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr425.pdf .

Mac. Sixty-five percent of this revenue is directed to the HTF and 35% is

directed to the Capital Magnet Fund (CMF). Ideally, a dedicated revenue

source means that HTF funds supplement rather than compete with existing

housing programs funded through annual appropriations.

The HTF can capture additional revenue to meet the housing needs of the

nation’s lowest income renters. A number of revenue sources have been

proposed, including expanding the contributions of Fannie Mae and Freddie

Mac. An effort to reform the two GSEs voted out of the Senate Committee

on Banking, Housing, and Urban Affairs (S. 1217) on a bipartisan

basis would have resulted in $3.5 billion a year for the HTF.13

To date, three of four housing finance reform bills have

included language to preserve and expand a dedicated

stream of revenue for the HTF.

Ranking Member of the House Committee on

Financial Services, Maxine Waters (D-CA),

introduced legislation on March 23, 2016

to provide $1 billion annually in mandatoryspending in perpetuity to the HTF. The Ending

Homelessness Act of 2016 (H.R. 4888) also

includes $50 million per year in project based rental

assistance for HTF units, an additional $5 billion

for permanent supportive housing targeted to the

chronically homeless, $2.5 billion for vouchers targeted

to homeless families and individuals, and $500 million

for outreach to the homeless. The bill has been referred to the

House Committee on Financial Services and the House Committee

on the Budget.14

NLIHC’s United for Homes campaign proposes modest mortgage interest

deduction (MID) reform to generate approximately $213 billion in revenue

13 National Low Income Housing Coalition (2014). “Committee approves housing finance reformmeasure.” Memo to Members, May 16, 2014. http://www.nlihc.org/article/committee-approves-housing-finance-reform-measure.

14 National Low Income Housing Coalition. (2016). “Representative Waters Introduces Bill to EndHomelessness, Funds NHTF at $1.05 Billion Annually.” Member to Members, March 28, 2016. http://

www.nlihc.org/article/representative-waters-introduces-bill-end-homelessness-funds-nhtf-105-billion-annually.

THE HOUSINGTRUST FUND IS THE FIRSTNEW FEDERAL HOUSING

PROGRAMIN A GENERATIONTO FOCUS ON ELIHOUSEHOLDS.

https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr425.pdfhttps://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr425.pdfhttp://www.nlihc.org/article/committee-approves-housing-finance-reform-measurehttp://www.nlihc.org/article/committee-approves-housing-finance-reform-measurehttp://www.nlihc.org/article/representative-waters-introduces-bill-end-homelessness-funds-nhtf-105-billion-annuallyhttp://www.nlihc.org/article/representative-waters-introduces-bill-end-homelessness-funds-nhtf-105-billion-annuallyhttp://www.nlihc.org/article/representative-waters-introduces-bill-end-homelessness-funds-nhtf-105-billion-annuallyhttp://www.nlihc.org/article/representative-waters-introduces-bill-end-homelessness-funds-nhtf-105-billion-annuallyhttp://www.nlihc.org/article/representative-waters-introduces-bill-end-homelessness-funds-nhtf-105-billion-annuallyhttp://www.nlihc.org/article/representative-waters-introduces-bill-end-homelessness-funds-nhtf-105-billion-annuallyhttp://www.nlihc.org/article/committee-approves-housing-finance-reform-measurehttp://www.nlihc.org/article/committee-approves-housing-finance-reform-measurehttps://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr425.pdfhttps://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr425.pdf

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over 10 years for the HTF.15 The

campaign proposes reducing

the mortgage amount eligible

for the interest deduction

from $1 million to

$500,000 and converting

the deduction to a 15%

non-refundable tax credit.Representative Keith

Ellison (D-MN) introduced

the Common Sense Housing

Investment Act of 2015 (H.R.

1662) on March 26, 2015

that includes these two MID

provisions.16 The bill directs sixty

percent of the reform’s savings to

the HTF and the remainder to the Public

Housing Capital Fund, the Section 8 program, andthe Low Income Housing Tax Credit (LIHTC).

ConclusionOut of Reach 2016 highlights the affordability gap between the cost of rental

housing and the wages of millions of renters who do not earn enough to afford

a decent and safe home without significant sacrifice. Low income renters face

the greatest challenge. Higher wages and a greater supply of affordable rental

housing are necessary. If we make further gains in minimum wage legislation

and expand funding for the national Housing Trust Fund, we can address theaffordability gap.

The Numbers in this ReportOut of Reach 2016 is based on data from HUD, the U.S. Census Bureau, the

Bureau of Labor Statistics, the Department of Labor, and the Social Security

15 Lu, C., Rosenberg, J., & Toder, E. (2015). Options to reform the deduction for home mortgage interest.Washington, DC: Tax Policy Center . Retrieved from http://www.urban.org/research/publication/options-reform-deduction-home-mortgage-interest-1.

16 National Low Income Housing Coalition. (2016). “Representative Ellison’s “Dear Colleague” Letter on

Ending Family Homelessness.” Memo to Members, February 29, 2016. http://www.nlihc.org/article/ representative-ellison-s-dear-colleague-letter-ending-family-homelessness.

Administration. See Appendix A for a detailed explanation of data sources and

methodologies.

The Housing Wage is based on HUD FMRs, which are the Department’s

best estimate of what a household seeking a modest rental unit can expect

to pay for rent and utilities in the current market. The FMR is an estimate

of what a family moving today can expect to pay for a modest rental home,

not what current renters are paying on average. The FMR is the basis for

the rent payment standard for Housing Choice Vouchers and other HUD

programs. They are applied uniformly within each FMR area, which is either

a metropolitan region or nonmetropolitan county.17 This approach fails to

account for rent variation within an FMR area.

HUD has developed hypothetical small area fair market rents

(SAFMRs) based on U.S. Postal Service ZIP codes in

metropolitan areas to better reflect small-scale

market conditions within metropolitan regions.

HUD asked for comments on using SAFRMs

for Housing Choice Voucher paymentstandards in certain metropolitan areas

last summer and sent a proposed

rule to the Office of Management

and Budget (OMB) on February

9, 2016. OMB is reviewing

the rule. NLIHC has long

supported SAFMRs within

the voucher program.

NLIHC is examining

SAFMRs as a tool to

estimate the Housing

Wage at a more local scale

within metropolitan areas.

Table 2 compares the

Housing Wage for the San

Francisco HUD Metro FMR

17 Exceptions are the Dallas, TX HMFAand five public housing authorities

participating in the Small Area FMRDemonstration Program.

LOW INCOMERENTERS FACE THE

GREATEST CHALLENGE.HIGHER WAGES AND

A GREATER SUPPLY OFAFFORDABLE RENTAL

HOUSING ARENECESSARY .

http://www.urban.org/research/publication/options-reform-deduction-home-mortgage-interest-1http://www.urban.org/research/publication/options-reform-deduction-home-mortgage-interest-1http://www.nlihc.org/article/representative-ellison-s-dear-colleague-letter-ending-family-homelessnesshttp://www.nlihc.org/article/representative-ellison-s-dear-colleague-letter-ending-family-homelessnesshttp://www.nlihc.org/article/representative-ellison-s-dear-colleague-letter-ending-family-homelessnesshttp://www.nlihc.org/article/representative-ellison-s-dear-colleague-letter-ending-family-homelessnesshttp://www.urban.org/research/publication/options-reform-deduction-home-mortgage-interest-1http://www.urban.org/research/publication/options-reform-deduction-home-mortgage-interest-1

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Area (HMFA) to the housing wage for places within the San Francisco HMFA.

NLIHC is exploring how best to use SAFMRs within metropolitan regions to

reflect local area housing wages.

Readers are cautioned against comparing statistics in one edition of Out of

Reach with those in another. In recent years, HUD has changed its methodology

for calculating FMRs and incomes. Since 2012, HUD has developed FMR

estimates using American Community Survey (ACS) data to determine base

rents, rather than data from the Census Bureau’s Decennial Survey. The newmethodology can introduce more year-to-year variability in FMRs. For this

reason and others (e.g., changes to the metropolitan area definitions), readers

should not compare this year’s report to previous editions of Out of Reach

and assume that all differences reflect actual market dynamics.

Please consult the appendices and NLIHC research staff for

assistance interpreting changes in the data.

TABLE 2: SAMPLE HOUSING WAGES IN THE SANFRANCISCO HMFA

HMFA/PlaceOne-BedroomHousing Wage

Two-BedroomHousing Wage

San Francisco HMFA $34.88 $44.02

San Francisco City $29.40 $36.03

Menlo Park City $34.42 $42.12

Foster City $41.15 $50.58

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U S E R ' S

G U I DE

RENTER HOUSEHOLDSAREA MEDIAN INCOME (AMI)

% of totalhouseholds

36%

AnnualAMI4

$67,593

Monthlyrent

affordableat 30%of AMI

$507

Monthlyrent

affordableat AMI5

$1,690

30%of AMI6

$20,278UNITED STATES

Estimatedhourly

mean renterwage

$15.42

Renterhouseholds

41,802,847

HOUSING COSTS

Full-time jobsat minimum

wage 3 needed toafford 2 BR FMR

2.8

2 BRFMR

$1,056

Annual incomeneeded to afford

2 BR FMR

$42,240

Hourly wage needed toafford 2 BR1 FMR2

FY16 HOUSING WAGE

Monthly rentaffordableat mean

renter wage

$802

Full-time jobs at

mean renterwage needed toafford 2 BR FMR

1.3$20.30

There were 41,802,847renter households in the

United States (2010-2014).

In the United States, an

extremely low incomefamily (30% of AMI) earns$20,278 annually.

For a family earning 30% of AMI,monthly rent of $507 or less isaffordable.

Renter householdsrepresented 36% of allhouseholds in the UnitedStates (2010-2014).

A renter household needsto earn at least $20.30 per

hour in order to afford atwo-bedroom unit at FMR.

The annual median familyincome (AMI) in the United

States is $67,593 (2016).

For a family earning 100% of AMI,monthly rent of $1,690 or less isaffordable.

The FMR for a

two-bedroom rental unit inthe United States is $1,056(2016).

A renter household needs an annual income of $42,240 in order to afford a two-bedroom rentalunit at FMR.

A renter household needs 2.8full-time jobs paying the minimumwage in order to afford atwo-bedroom rental unit at FMR.

A renter household needs 1.3 full-time jobspaying the mean renter wage in order toafford a two-bedroom rental unit at FMR.

The estimated mean(average) renter wage in theUnited States is $15.42 per hour (2016).

If a household earns the meanrenter wage, monthly rent of $802 or less is affordable.

1: BR = Bedroom.

2: FMR = Fiscal Year 2016 Fair Market Rent (HUD, 2016).

3: This calculation uses the higher of the state or federal minimumwage. Local minimum wages are not used. See Appendix A.

4: AMI = Fiscal Year 2016 Area Median Income (HUD, 2016).

5: "Affordable" rents represent the generally accepted standard of spending no more than 30% of gross income on rent and utilities.

HOW TO USE THE NUMBERS

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U S E R ' S

G U I DE RENTER HOUSEHOLDSAREA MEDIAN INCOME (AMI)


36%

AnnualAMI4

$67,593

Monthlyrent


$507

Monthlyrent

affordableat AMI5

$1,690

30%of AMI6

$20,278UNITED STATES

Estimatedhourly

mean renterwage

$15.42

Renterhouseholds

41,802,847

HOUSING COSTS

Full-time jobsat minimum

wage 3 needed toafford 2 BR FMR

2.8

2 BRFMR

$1,056

Annual incomeneeded to afford

2 BR FMR

$42,240

Hourly wage needed toafford 2 BR1 FMR2

FY16 HOUSING WAGE

Monthly rentaffordableat mean

renter wage

$802

Full-time jobs at

mean renterwage needed toafford 2 BR FMR

1.3

ACS (2010-2014).

Multiply Annual AMI by .3($67,857 x .3 = $20,278).

Multiply 30% of Annual AMI by .3 to getmaximum amount that can be spent onhousing for it to be affordable ($20,278x .3 = $6,083). Divide by 12 to obtainmonthly amount ($6,083/ 12 = $507).

Divide number of renter householdsby total number of households(ACS 2010-2014) (41,802,847/117,452,309= .36).Then multiply by100 (.36 x 100 = 36%).

Divide income needed toafford FMR ($42,240) by 52(weeks per year) and then

by 40 (hours per work week)($42,240 / 52 = $812; $812 /40 = $20.30).

HUD FY16 estimated medianfamily income based on data

from the American CommunitySurvey (ACS). See Appendix A

Multiply Annual AMI by .3 to get maximumamount that can be spent on housing for itto be affordable ($67,593 x .3 = $20,278).Divide by 12 to obtain monthly amount($20,278 / 12 = $1,690).

Developed by HUDannually (2016). SeeAppendix A.

Multiply the FMR by 12 to get yearly rental cost($1,056 x 12 = $12,672). Then divide by .3 todetermine the total income needed to afford$12,660 per year in rent ($12,672 / .3 = $42,240).

Divide income needed to afford theFMR by 52 (weeks per year)($42,200 / 52 = $812). Then divide

by $7.25 (the Federal minimumwage) ($812 / $7.25 = 112 hours).Finally, divide by 40 (hours per work week (112 / 40=2.8full-time jobs).

Divide income needed to afford the FMR by

52 (weeks per year) ($42,240 / 52 = $812).Then divide by $15.42 (The United States'mean renter wage) ($812 / $15.42 = 53hours). Finally, divide by 40 (hours per workweek) (53/ 40 = 1.3 full-time jobs).

Average wage reported by theBureau of Labor Statistics(BLS) for 2014, adjusted toreflect the income of renter households relative to allhouseholds in the UnitedStates, and projected to 2016.See Appendix A.

Calculate annual income bymultiplying mean renter wage by 40(hours per week) and 52 (weeks per year) ($15.42 x 40 x 52 = $32,073).Multiply by .3 to determine maximumamount that can be spent on rent($32,073 x .3 = $9,622). Divide by12 to obtain monthly amount ($9,622/12=$802)

1: BR = Bedroom.

2: FMR = Fiscal Year 2016 Fair Market Rent (HUD, 2016).

3: This calculation uses the higher of the state or federal minimumwage. Local minimum wages are not used. See Appendix A.

4: AMI = Fiscal Year 2016 Area Median Income (HUD, 2016).

5: "Affordable" rents represent the generally accepted standard of spending no more than 30% of gross income on rent and utilities.

$20.30

WHERE THE NUMBERS COME FROM

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T A B L E S

& MA P S

2016 MOST EXPENSIVE JURISDICTIONS

States1Housing Wage forTwo-Bedroom FMR

Counties2Housing Wage forTwo-Bedroom FMR

Hawaii $34.22 Marin County, CA $44.02

District of Columbia $31.21 San Francisco County, CA $44.02

California $28.59 San Mateo County, CA $44.02

New York $26.69 Alameda County, CA $40.44

Maryland $26.53 Contra Costa County, CA $40.44

New Jersey $26.52 Santa Clara County, CA $38.35

Massachusetts $25.91 Honolulu County, HI $38.17

Connecticut $24.72 Orange County, CA $32.15

Alaska $23.25 Pitkin County, CO $31.96

Washington $23.13

Metropolitan AreasHousing Wage forTwo-Bedroom FMR

Combined Nonmetro AreasHousing Wage forTwo-Bedroom FMR

San Francisco, CA HMFA3 $44.02 Massachusetts $27.41

Oakland-Fremont, CA HMFA $40.44 Hawaii $23.19

San Jose-Sunnyvale-Santa Clara, CA HMFA $38.35 Alaska $21.61

Honolulu, HI MSA4 $38.17 Connecticut $19.93

Stamford-Norwalk, CT HMFA $37.15 California $18.98

Danbury, CT HMFA $34.13 New Hampshire $18.71Orange County, CA HMFA $32.15 Vermont $18.27

Washington-Arlington-Alexandria, DC-VA-MD HMFA $31.21 Colorado $17.29

Nassau-Suffolk, NY HMFA $30.92 Maryland $16.86

Santa Cruz-Watsonville, CA MSA $30.85 North Dakota $16.17

1 Includes District of Columbia.2 Excludes metropolitan counties in New England.3 HMFA = HUD Metro Fair Market Rent (FMR) Area. This term indicates that a portion of the Ofce of Management & Budget (OMB) dened core-based statistical is in the area to which the income

limits and FMRs apply. HUD is required by OMB to alter the name of the metropolitan geographic entities it derives from the Core Based Statistical Area (CBSA) when the geography is not thesame as that established by the OMB.

4 MSA = Metropolitan Statistical Area. Geographic entities dened by OMB for use by the federal statistical agencies in collecting, tabulating, and publishing federal statistics.A metro area contains an urban core of 50,000 or more in population.

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T A B L E S

& MA P S

2016 STATES RANKED BY TWO-BEDROOM HOUSING WAGEStates are ranked from most expensive to least expensive.

Rank StateHousing Wage forTwo-Bedroom FMR

Rank StateHousing Wage forTwo-Bedroom FMR

1 Hawaii $34.22 27 Georgia $16.30

2 District of Columbia $31.21 28 New Mexico $16.06

3 California $28.59 29 Wisconsin $15.92

4 New York $26.69 30 Louisiana $15.81

5 Maryland $26.53 31 North Dakota $15.66

6 New Jersey $26.52 32 Michigan $15.62

7 Massachusetts $25.91 33 Wyoming $15.62

8 Connecticut $24.72 34 North Carolina $15.32

9 Alaska $23.25 35 Kansas $15.01

10 Washington $23.13 36 Tennessee $14.9911 Virginia $22.44 37 Missouri $14.98

12 Delaware $21.70 38 Indiana $14.84

13 Vermont $21.13 39 South Carolina $14.84

14 Colorado $21.12 40 Montana $14.60

15 New Hampshire $21.09 41 Ohio $14.45

16 Illinois $19.98 42 Nebraska $14.45

17 Florida $19.96 43 Oklahoma $14.33

18 Oregon $19.38 44 Idaho $14.22

19 Rhode Island $19.06 45 Kentucky $14.1020 Pennsylvania $18.27 46 Mississippi $14.07

21 Nevada $18.26 47 Iowa $14.03

22 Minnesota $17.76 48 Alabama $13.93

23 Texas $17.60 49 South Dakota $13.77

24 Arizona $17.18 50 Arkansas $13.26

25 Maine $17.04 51 West Virginia $13.17

26 Utah $16.32 52 Puerto Rico $9.58

1 Includes District of Columbia and Puerto Rico.2 FMR = Fair Market Rent.

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T A B L E S

& MA P S

2016 TWO-BEDROOM RENTAL UNIT HOUSING WAGERepresents the hourly wage that a household must earn (working 40 hours a week, 52 weeks a year) in order to afford theFair Market Rent for a two-bedroom rental unit, without paying more than 30% of their income.

Less than $15.00

$15.00 to less than $20.00

$20.00 or More

Two-Bedroom Housing Wage

ME$17.04

NH $21.09

MA $25.91

CT $24.72

NY

$26.69

PA

$18.27

NJ $26.52DE $21.70MD $26.53DC $31.21

VA$22.44

WV$13.17

OH$14.13IN

$14.84

MI$15.62

IL$19.98

WI$15.52

MN$17.76

IA$14.03

MO

$14.98

AR$13.26

LA

$15.81TX

$17.60

OK $14.33

KS$15.01

NE$14.45

ND$15.66

SD$13.77

MT$14.60

ID

$14.22

WA$23.13

OR

$19.38

CA$28.59

AK

$23.25

HI

$34.22

WY $15.62

CO$21.12

UT

$16.32

NV$18.26

AZ$17.18

NM

$16.06

NC$15.32TN

$14.99

KY

$14.10

SC$14.84

GA$16.30

AL$13.93

MS$14.07

FL$19.96

PR $9.58

RI $19.06

VT $21.13

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T A B L E S

& MA P S

*This state’s minimum wage exceeds the federal minimum wage

61 to 78 hours per week 79 hours per week or more60 hours per week or less

Hours needed at minimum wage to afford a one-bedroom unit

ME

73*

NH 91

MA 83*

RI 65*

NY

101*

PA

81

NJ 105*

DE 86*

MD 106*DC 103*

PR 44

VA105

WV

49*

OH

55*IN

65

MI

57*

IL

81*

WI

69

MN

62*

IA

60

MO

61*

AR

52*

LA

71TX

78

OK

61

KS

64

NE

50*

ND

67

SD

50*

MT

57*

ID

61

WA78*

OR

68*

CA89*

AK

75*

HI

124*

WY

67

CO

80*

UT

73

NV

71*

AZ

68* NM

69*

NC

70TN

67

KY

61

SC

68

GA

76

AL

63

MS

64

FL79*

CT 82*

VT 69*

2016 HOURS AT MINIMUM WAGE NEEDED TO AFFORD RENTIn no state can a minimum wage worker afford a ONE-BEDROOM rental unit at the average Fair Market Rent, working a standard40-hour work week, without paying more than 30% of their income.

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T A B L E S

& MA P S

STATE SUMMARY FY16

HOUSINGWAGE

HOUSING COSTS AREA MEDIAN INCOME (AMI) RENTER HOUSEHOLDS

State

Hourly wageneeded to

afford 2 BR1 FMR2 2 BR FMR

Annual incomeneeded to Afford

2 BR FMR

Full-time jobs atminimum wage3 needed to afford

2 BR FMR Annual AMI4

Monthly rentaffordable at

AMI5 30% of AMI


30% AMI

Renterhouseholds(2010-2014)

% of totalhouseholds(2010-2014

Estimatedhourly meanrenter wage

(2016)

Monthly rentaffordable atmean renter

wage

Full-time jobsat mean renter

wage needed toafford 2 BR FMR

Alabama $13.93 $724 $28,973 1.90 $56,631 $1,416 $16,989 $425 $567,978 31% $11.64 $605 1.2

Alaska $23.25 $1,209 $48,359 2.40 $86,917 $2,173 $26,075 $652 $92,263 37% $17.76 $924 1.3

Arizona $17.18 $893 $35,726 2.10 $59,520 $1,488 $17,856 $446 $873,952 37% $15.28 $794 1.1

Arkansas $13.26 $689 $27,572 1.70 $53,147 $1,329 $15,944 $399 $378,868 33% $11.96 $622 1.1

California $28.59 $1,487 $59,464 2.90 $72,682 $1,817 $21,805 $545 $5,708,355 45% $19.22 $999 1.5

Colorado $21.12 $1,098 $43,939 2.50 $75,294 $1,882 $22,588 $565 $703,266 35% $15.97 $830 1.3

Connecticut $24.72 $1,285 $51,420 2.60 $89,400 $2,235 $26,820 $671 $443,163 33% $16.21 $843 1.5

Delaware $21.70 $1,128 $45,138 2.60 $72,989 $1,825 $21,897 $547 $96,186 28% $16.03 $834 1.4

District of Columbia $31.21 $1,623 $64,920 3.00 $108,600 $2,715 $32,580 $815 $156,217 58% $26.09 $1,357 1.2

Florida $19.96 $1,038 $41,527 2.50 $57,685 $1,442 $17,305 $433 $2,444,564 34% $14.49 $754 1.4

Georgia $16.30 $848 $33,908 2.20 $59,981 $1,500 $17,994 $450 $1,268,689 36% $14.58 $758 1.1

Hawaii $34.22 $1,780 $71,184 4.00 $82,123 $2,053 $24,637 $616 $192,984 43% $14.53 $755 2.4

Idaho $14.22 $739 $29,580 2.00 $58,582 $1,465 $17,575 $439 $180,278 31% $11.23 $584 1.3

Illinois $19.98 $1,039 $41,567 2.40 $72,547 $1,814 $21,764 $544 $1,583,926 33% $15.25 $793 1.3

Indiana $14.84 $772 $30,868 2.00 $60,980 $1,524 $18,294 $457 $761,229 31% $12.15 $632 1.2

Iowa $14.03 $730 $29,183 1.90 $68,743 $1,719 $20,623 $516 $347,244 28% $11.29 $587 1.2

Kansas $15.01 $781 $31,221 2.10 $64,691 $1,617 $19,407 $485 $365,546 33% $12.42 $646 1.2

Kentucky $14.10 $733 $29,319 1.90 $57,445 $1,436 $17,233 $431 $550,223 32% $11.46 $596 1.2

Louisiana $15.81 $822 $32,891 2.20 $58,254 $1,456 $17,476 $437 $579,120 34% $13.46 $700 1.2

Maine $17.04 $886 $35,453 2.30 $63,145 $1,579 $18,944 $474 $157,971 29% $10.36 $539 1.6Maryland $26.53 $1,380 $55,183 3.20 $93,193 $2,330 $27,958 $699 $710,103 33% $15.91 $827 1.7

Massachusetts $25.91 $1,347 $53,886 2.60 $88,037 $2,201 $26,411 $660 $957,547 38% $18.47 $960 1.4

Michigan $15.62 $812 $32,494 1.80 $63,683 $1,592 $19,105 $478 $1,089,868 28% $12.72 $662 1.2

Minnesota $17.76 $924 $36,941 2.00 $77,878 $1,947 $23,364 $584 $590,136 28% $13.32 $692 1.3

Mississippi $14.07 $732 $29,268 1.90 $49,227 $1,231 $14,768 $369 $339,802 31% $10.64 $553 1.3

Missouri $14.98 $779 $31,158 2.00 $62,790 $1,570 $18,837 $471 $756,950 32% $12.74 $662 1.2

1: BR = Bedroom.2: FMR = Fiscal Year 2016 Fair Market Rent (HUD, 2016).3: This calculation uses the higher of the state or federal minimum wage. Local minimumwages

are not used. See Appendix A.

4: AMI = Fiscal Year 2016 Area Median Income (HUD, 2015).5: “Affordable” rents represent the generally accepted standard of spending no more than 30%

of gross income on rent and utilities.

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T A B L E S

& MA P S

FY16HOUSING

WAGEHOUSING COSTS AREA MEDIAN INCOME (AMI) RENTER HOUSEHOLDS

State

Hourly wageneeded to

afford 2 BR1

FMR2

2 BR FMR

Annual incomeneeded to Afford

2 BR FMR

Full-time jobs atminimum wage3 needed to afford

2 BR FMR Annual AMI4


AMI5

30% of AMI


30% AMI

Renterhouseholds

(2010-2014)


(2010-2014


(2016)

Monthly rentaffordable atmean renter

wage

Full-time jobsat mean renter

wage needed to

afford 2 BR FMRMontana $14.60 $759 $30,361 1.80 $61,427 $1,536 $18,428 $461 $131,596 32% $11.23 $584 1.3

Nebraska $14.45 $751 $30,058 1.60 $66,857 $1,671 $20,057 $501 $245,311 34% $11.59 $603 1.2

Nevada $18.26 $950 $37,987 2.20 $61,463 $1,537 $18,439 $461 $446,047 44% $15.34 $798 1.2

New Hampshire $21.09 $1,097 $43,865 2.90 $78,912 $1,973 $23,673 $592 $150,420 29% $14.08 $732 1.5

New Jersey $26.52 $1,379 $55,152 3.20 $86,994 $2,175 $26,098 $652 $1,114,583 35% $16.98 $883 1.6

New Mexico $16.06 $835 $33,404 2.10 $56,979 $1,424 $17,094 $427 $243,406 32% $12.53 $652 1.3

New York $26.69 $1,388 $55,508 3.00 $74,427 $1,861 $22,328 $558 $3,348,537 46% $22.85 $1,188 1.2

North Carolina $15.32 $796 $31,859 2.10 $59,375 $1,484 $17,813 $445 $1,280,773 34% $13.21 $687 1.2

North Dakota $15.66 $814 $32,565 2.20 $73,664 $1,842 $22,099 $552 $101,996 35% $15.22 $792 1.0

Ohio $14.45 $751 $30,060 1.80 $63,229 $1,581 $18,969 $474 $1,513,809 33% $12.17 $633 1.2Oklahoma $14.33 $745 $29,796 2.00 $58,586 $1,465 $17,576 $439 $485,544 33% $13.43 $698 1.1

Oregon $19.38 $1,008 $40,318 2.10 $64,014 $1,600 $19,204 $480 $586,182 38% $13.87 $721 1.4

Pennsylvania $18.27 $950 $38,000 2.50 $70,326 $1,758 $21,098 $527 $1,511,506 30% $13.80 $718 1.3

Puerto Rico $9.58 $498 $19,930 1.30 $23,775 $594 $7,133 $178 $379,256 31% $6.91 $359 1.4

Rhode Island $19.06 $991 $39,639 2.00 $73,931 $1,848 $22,179 $554 $162,740 40% $12.59 $655 1.5

South Carolina $14.84 $772 $30,860 2.00 $57,558 $1,439 $17,267 $432 $563,561 31% $11.53 $599 1.3

South Dakota $13.77 $716 $28,631 1.60 $64,740 $1,619 $19,422 $486 $104,512 32% $10.88 $566 1.3

Tennessee $14.99 $779 $31,175 2.10 $57,600 $1,440 $17,280 $432 $817,396 33% $12.96 $674 1.2

Texas $17.60 $915 $36,611 2.40 $64,360 $1,609 $19,308 $483 $3,361,040 37% $17.07 $887 1.0

Utah $16.32 $849 $33,944 2.30 $69,938 $1,748 $20,981 $525 $271,589 30% $12.39 $644 1.3Vermont $21.13 $1,099 $43,947 2.20 $71,642 $1,791 $21,493 $537 $74,835 29% $11.79 $613 1.8

Virginia $22.44 $1,167 $46,675 3.10 $78,798 $1,970 $23,639 $591 $1,013,466 33% $16.45 $856 1.4

Washington $23.13 $1,203 $48,119 2.40 $75,979 $1,899 $22,794 $570 $986,856 37% $16.69 $868 1.4

West Virginia $13.17 $685 $27,390 1.50 $54,658 $1,366 $16,397 $410 $200,752 27% $10.62 $552 1.2

Wisconsin $15.92 $828 $33,115 2.20 $68,241 $1,706 $20,472 $512 $741,481 32% $12.07 $627 1.3

Wyoming $15.62 $812 $32,489 2.20 $74,359 $1,859 $22,308 $558 $69,225 31% $14.28 $743 1.1

1: BR = Bedroom.2: FMR = Fiscal Year 2016 Fair Market Rent (HUD, 2016).3: This calculation uses the higher of the state or federal minimum wage. Local minimumwages

are not used. See Appendix A.

4: AMI = Fiscal Year 2016 Area Median Income (HUD, 2015).5: “Affordable” rents represent the generally accepted standard of spending no more than 30%

of gross income on rent and utilities.

STATE SUMMARY

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Two bedroom FMR

Rent affordable at area median income (AMI)

Rent affordable with full-time job paying meanrenter wage

Rent affordable at 30% of AMI

Rent affordable with full-time job payingmin wage

Rent affordable to SSI recipient

$724

$1,416

$605

$425

$377

$220

$0 $500 $1,000 $1,500 $2,000


* Ranked from Highest to Lowest 2-Bedroom Housing Wage

PERHOUR

ALABAMAIn Alabama, the Fair Market Rent (FMR) for a two-bedroom apartment is $724. In order toafford this level of rent and utilities — without paying more than 30% of income on housing —

a household must earn $2,414 monthly or $28,973 annually. Assuming a 40-hour work week,52 weeks per year, this level of income translates into an hourly Housing Wage of:

STATERANKING

48*

$13.93STATE FACTS MOST EXPENSIVE COUNTIES HOUSING WAGE*

Minimum Wage $7.25 Baldwin County $16.79Average Renter Wage $11.64 Bibb County $16.15

2-Bedroom Housing Wage $13.93 Blount County $16.15

Number of Renter Households 567,978 Jefferson County $16.15

Percent Renters 31% Shelby County (tied with 1 other) $16.15

77 Work Hours Per Week At Minimum Wage Needed

To Afford a 2-Bedroom Unit (at FMR)

–––––––––––––

1.9Number of Full-Time Jobs At Minimum WageNeeded To Afford a 2-Bedroom Unit (at FMR)

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Metropolitan Areas

Anniston-Oxford MSA

Auburn-Opelika MSA

Birmingham-Hoover HMFA

Chilton County HMFA

Columbus MSA

Daphne-Fairhope-Foley MSA

Decatur MSA

Dothan HMFA

Florence-Muscle Shoals MSA

Gadsden MSA

Henry County HMFA

Huntsville MSA

Mobile MSA

Montgomery MSA

Pickens County HMFA

Tuscaloosa HMFA

Walker County HMFA

Counties

$583 $23,338 29%$11.22 $9.921.5 1.1$516Combined Nonmetro Areas $46,625 $13,987 $350 127,481$1,166

Alabama $1,416$724 $28,973 31%$13.93 $11.64 1.2$605$425 567,9781.9 $56,631 $16,989

Autauga County 5,056$60,400 $453$1,510$788 $31,520 25%$18,120$15.15 $10.172.1 1.5$529

Baldwin County 20,855$61,100 $458$1,528$873 $34,920 29%$18,330$16.79 $10.622.3 1.6$552

Barbour County 2,964$44,600 $335$1,115$636 $25,440 32%$13,380$12.23 $8.141.7 1.5$423

$46,700 $350$1,168$637 $25,480 31%$14,010$12.25 $8.781.7 1.4$45714,271

$60,800 $456$1,520$748 $29,920 40%$18,240$14.38 $8.032.0 1.8$41822,440

$64,000 $480$1,600$840 $33,600 31%$19,200$16.15 $14.172.2 1.1$737121,830

$53,500 $401$1,338$569 $22,760 25%$16,050$10.94 $10.051.5 1.1$5234,011

$51,800 $389$1,295$777 $31,080 41%$15,540$14.94 $12.932.1 1.2$6728,932

$61,100 $458$1,528$873 $34,920 29%$18,330$16.79 $10.622.3 1.6$55220,855

$56,200 $422$1,405$632 $25,280 27%$16,860$12.15 $12.121.7 1.0$63015,741

$51,300 $385$1,283$647 $25,880 34%$15,390$12.44 $11.211.7 1.1$58316,874

$54,200 $407$1,355$619 $24,760 30%$16,260$11.90 $9.281.6 1.3$48318,171

$51,200 $384$1,280$636 $25,440 29%$15,360$12.23 $9.681.7 1.3$50311,664

$56,200 $422$1,405$580 $23,200 22%$16,860$11.15 $11.111.5 1.0$5781,534

$71,800 $539$1,795$727 $29,080 30%$21,540$13.98 $12.751.9 1.1$66349,690

$52,900 $397$1,323$788 $31,520 33%$15,870$15.15 $11.312.1 1.3$58851,427

$60,400 $453$1,510$788 $31,520 34%$18,120$15.15 $11.292.1 1.3$58748,764

$39,700 $298$993$569 $22,760 28%$11,910$10.94 $8.001.5 1.4$4162,165

$58,800 $441$1,470$804 $32,160 34%$17,640$15.46 $10.502.1 1.5$54625,503

$46,300 $347$1,158$625 $25,000 26%$13,890$12.02 $9.651.7 1.2$5026,625

1: BR = Bedroom

2: FMR = Fiscal Year 2015 Fair Market Rent (HUD, 2016)

3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix A.

4: AMI = Fiscal Year 2016 Area Median Income

5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.

RENTER HOUSEHOLDS

Renterhouseholds

(2010-2014)

% of totalhouseholds(2010-2014)

AREA MEDIAN INCOME (AMI)

2 BRFMR

Annual incomeneededto afford

2 BR FMRAnnualAMI4

Monthly rentaffordable

at AMI5

Monthlyrent


Monthlyrent

affordableat mean

renter wage

HOUSING COSTS


(2016)

Full-time jobs atminimum wageneeded to afford

2 BR FMR3

Hourly wagenecessary toafford 2 BR1

FMR2

Full-time jobs atmean renter

wage needed toafford 2 BR

FY16 HOUSING WAGE

30%of AMI

Alabama

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Alabama

Bibb County 1,629$64,000 $480$1,600$840 $33,600 23%$19,200$16.15 $13.422.2 1.2$698

Blount County 4,518$64,000 $480$1,600$840 $33,600 22%$19,200$16.15 $8.622.2 1.9$448

Bullock County 1,019$46,100 $346$1,153$569 $22,760 27%$13,830$10.94 $9.711.5 1.1$505

Butler County 2,483$39,500 $296$988$569 $22,760 30%$11,850$10.94 $8.501.5 1.3$442

Calhoun County 14,271$46,700 $350$1,168$637 $25,480 31%$14,010$12.25 $8.781.7 1.4$457

Chambers County 4,570$42,100 $316$1,053$667 $26,680 33%$12,630$12.83 $10.241.8 1.3$533

Cherokee County 2,657$47,200 $354$1,180$569 $22,760 23%$14,160$10.94 $10.031.5 1.1$522

Chilton County 4,011$53,500 $401$1,338$569 $22,760 25%$16,050$10.94 $10.051.5 1.1$523

Choctaw County 989$47,100 $353$1,178$661 $26,440 18%$14,130$12.71 $13.551.8 0.9$704

Clarke County 2,923$46,700 $350$1,168$569 $22,760 30%$14,010$10.94 $9.981.5 1.1$519

Clay County 1,485$44,700 $335$1,118$569 $22,760 27%$13,410$10.94 $8.281.5 1.3$430

Cleburne County 1,261$47,300 $355$1,183$633 $25,320 22%$14,190$12.17 $13.531.7 0.9$704Coffee County 5,853$60,500 $454$1,513$584 $23,360 31%$18,150$11.23 $8.821.5 1.3$459

Colbert County 6,466$54,200 $407$1,355$619 $24,760 29%$16,260$11.90 $11.861.6 1.0$617

Conecuh County 1,147$32,800 $246$820$569 $22,760 23%$9,840$10.94 $8.011.5 1.4$417

Coosa County 836$48,000 $360$1,200$579 $23,160 19%$14,400$11.13 $12.531.5 0.9$651

Covington County 3,650$45,000 $338$1,125$569 $22,760 24%$13,500$10.94 $9.781.5 1.1$509

Crenshaw County 1,503$50,200 $377$1,255$569 $22,760 28%$15,060$10.94 $11.581.5 0.9$602

Cullman County 7,659$48,800 $366$1,220$604 $24,160 25%$14,640$11.62 $9.791.6 1.2$509

Dale County 7,517$57,600 $432$1,440$580 $23,200 39%$17,280$11.15 $14.411.5 0.8$750

Dallas County 6,367$39,100 $293$978$569 $22,760 39%$11,730$10.94 $9.631.5 1.1$501

DeKalb County 6,151$49,500 $371$1,238$595 $23,800 25%$14,850$11.44 $9.501.6 1.2$494

Elmore County 6,984$60,400 $453$1,510$788 $31,520 24%$18,120$15.15 $9.342.1 1.6$486

Escambia County 4,060$37,500 $281$938$569 $22,760 30%$11,250$10.94 $11.211.5 1.0$583

Etowah County 11,664$51,200 $384$1,280$636 $25,440 29%$15,360$12.23 $9.681.7 1.3$503

Fayette County 1,909$45,200 $339$1,130$569 $22,760 27%$13,560$10.94 $7.661.5 1.4$399

Franklin County 3,883$47,800 $359$1,195$569 $22,760 32%$14,340$10.94 $9.431.5 1.2$491

Geneva County 2,926$51,300 $385$1,283$647 $25,880 27%$15,390$12.44 $8.071.7 1.5$420

Greene County 938$32,600 $245$815$569 $22,760 29%$9,780$10.94 $8.461.5 1.3$440

1: BR = Bedroom2: FMR = Fiscal Year 2015 Fair Market Rent (HUD, 2016)3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix A.

4: AMI = Fiscal Year 2016 Area Median Income5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.

RENTER HOUSEHOLDS

Renterhouseholds

(2010-2014)



2 BRFMR


2 BR FMRAnnualAMI4


at AMI5

Monthlyrent


Monthlyrent

affordableat mean

renter wage

HOUSING COSTS


(2016)


2 BR FMR3


FMR2



FY16 HOUSING WAGE

30%of AMI

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25/264


Alabama

Hale County 1,375$58,800 $441$1,470$804 $32,160 23%$17,640$15.46 $8.992.1 1.7$467

Henry County 1,534$56,200 $422$1,405$580 $23,200 22%$16,860$11.15 $11.111.5 1.0$578

Houston County 13,948$51,300 $385$1,283$647 $25,880 35%$15,390$12.44 $11.491.7 1.1$597

Jackson County 5,212$48,600 $365$1,215$571 $22,840 26%$14,580$10.98 $8.521.5 1.3$443

Jefferson County 93,700$64,000 $480$1,600$840 $33,600 36%$19,200$16.15 $14.712.2 1.1$765

Lamar County 1,619$43,600 $327$1,090$569 $22,760 26%$13,080$10.94 $9.511.5 1.2$495

Lauderdale County 11,705$54,200 $407$1,355$619 $24,760 30%$16,260$11.90 $7.401.6 1.6$385

Lawrence County 2,501$56,200 $422$1,405$632 $25,280 19%$16,860$12.15 $15.471.7 0.8$804

Lee County 22,440$60,800 $456$1,520$748 $29,920 40%$18,240$14.38 $8.032.0 1.8$418

Limestone County 7,702$71,800 $539$1,795$727 $29,080 24%$21,540$13.98 $9.991.9 1.4$519

Lowndes County 1,109$60,400 $453$1,510$788 $31,520 26%$18,120$15.15 $14.742.1 1.0$766

Macon County 2,755$42,300 $317$1,058$569 $22,760 34%$12,690$10.94 $7.731.5 1.4$402Madison County 41,988$71,800 $539$1,795$727 $29,080 31%$21,540$13.98 $13.051.9 1.1$679

Marengo County 2,417$49,400 $371$1,235$569 $22,760 29%$14,820$10.94 $9.851.5 1.1$512

Marion County 3,099$42,800 $321$1,070$569 $22,760 25%$12,840$10.94 $8.511.5 1.3$442

Marshall County 9,756$50,700 $380$1,268$579 $23,160 28%$15,210$11.13 $9.531.5 1.2$495

Mobile County 51,427$52,900 $397$1,323$788 $31,520 33%$15,870$15.15 $11.312.1 1.3$588

Monroe County 2,357$37,800 $284$945$569 $22,760 28%$11,340$10.94 $8.841.5 1.2$460

Montgomery County 35,615$60,400 $453$1,510$788 $31,520 40%$18,120$15.15 $11.612.1 1.3$604

Morgan County 13,240$56,200 $422$1,405$632 $25,280 29%$16,860$12.15 $11.811.7 1.0$614

Perry County 1,059$33,000 $248$825$569 $22,760 32%$9,900$10.94 $7.161.5 1.5$372

Pickens County 2,165$39,700 $298$993$569 $22,760 28%$11,910$10.94 $8.001.5 1.4$416

Pike County 5,396$47,800 $359$1,195$584 $23,360 42%$14,340$11.23 $9.561.5 1.2$497

Randolph County 2,584$46,300 $347$1,158$569 $22,760 29%$13,890$10.94 $7.811.5 1.4$406

Russell County 8,932$51,800 $389$1,295$777 $31,080 41%$15,540$14.94 $12.932.1 1.2$672

St. Clair County 6,138$64,000 $480$1,600$840 $33,600 19%$19,200$16.15 $9.322.2 1.7$485

Shelby County 15,845$64,000 $480$1,600$840 $33,600 21%$19,200$16.15 $13.542.2 1.2$704

Sumter County 1,481$36,500 $274$913$686 $27,440 30%$10,950$13.19 $9.571.8 1.4$498

Talladega County 8,940$46,400 $348$1,160$569 $22,760 29%$13,920$10.94 $12.091.5 0.9$629

1: BR = Bedroom2: FMR = Fiscal Year 2015 Fair Market Rent (HUD, 2016)3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix A.

4: AMI = Fiscal Year 2016 Area Median Income5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.

RENTER HOUSEHOLDS

Renterhouseholds

(2010-2014)



2 BRFMR


2 BR FMRAnnualAMI4


at AMI5

Monthlyrent


Monthlyrent

affordableat mean

renter wage

HOUSING COSTS


(2016)


2 BR FMR3


FMR2



FY16 HOUSING WAGE

30%of AMI

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Alabama

Tallapoosa County 4,823$48,100 $361$1,203$569 $22,760 29%$14,430$10.94 $8.641.5 1.3$449

Tuscaloosa County 24,128$58,800 $441$1,470$804 $32,160 35%$17,640$15.46 $10.542.1 1.5$548

Walker County 6,625$46,300 $347$1,158$625 $25,000 26%$13,890$12.02 $9.651.7 1.2$502

Washington County 826$51,700 $388$1,293$635 $25,400 13%$15,510$12.21 $17.381.7 0.7$904

Wilcox County 1,011$27,400 $206$685$569 $22,760 26%$8,220$10.94 $10.131.5 1.1$527

Winston County 2,322$42,200 $317$1,055$569 $22,760 24%$12,660$10.94 $8.321.5 1.3$432

1: BR = Bedroom2: FMR = Fiscal Year 2015 Fair Market Rent (HUD, 2016)3: This calculation uses the higher of the state or federal minimum wage. Local minimum wages are not used. See Appendix A.4: AMI = Fiscal Year 2016 Area Median Income5: "Affordable" rents represent the generally accepted standard of spending not more than 30% of gross income on gross housing costs.

RENTER HOUSEHOLDS




2 BRFMR


2 BR FMRAnnualAMI4


at AMI5

Monthlyrent


Monthlyrent

affordableat mean

renter wage

HOUSING COSTS


(2016)


2 BR FMR3


FMR2



FY16 HOUSING WAGE

30%of AMI

8/16/2019 Out of Reach 2016

27/264

$1,209

$2,173

$924

$652

$507

$329

Two bedroom FMR






$2,500$0 $500 $1,000 $1,500 $2,000



PERHOUR

ALASKAIn Alaska, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,209. In order toafford this level of rent and utilities — without paying more than 30% of income on housing —

a household must earn $4,030 monthly or $48,359 annually. Assuming a 40-hour work week,52 weeks per year, this level of income translates into an hourly Housing Wage of:

STATERANKING

9*


Minimum Wage $9.75 Aleutians West Census Area $28.90

Average Renter Wage $17.76 Nome Census Area $26.46

2-Bedroom Housing Wage $23.25 Bethel Census Area $26.33

Number of Renter Households 92,263 Juneau City and Borough $25.25

Percent Renters 37% Anchorage Municipality $24.85

95 Work Hours Per Week At Minimum Wage Needed

To Afford a 2-Bedroom Unit (at FMR)

–––––––––––––

2.4Number of Full-Time Jobs At Minimum WageNeeded To Afford a 2-Bedroom Unit (at FMR)

8/16/2019 Out of Reach 2016

28/264


Alaska

$1,124 $44,954 35%$21.61 $21.192.2 1.0$1,102Combined Nonmetro Areas $76,385 $22,916 $573 27,763$1,910

Alaska $2,173$1,209 $48,359 37%$23.25 $17.76 1.3$924$652 92,2632.4 $86,917 $26,075

Counties

Aleutians East Borough 253$69,500 $521$1,738$916 $36,640 44%$20,850$17.62 $16.361.8 1.1$851

Aleutians West Census Area 717$89,500 $671$2,238$1,503 $60,120 65%$26,850$28.90 $22.663.0 1.3$1,178

Anchorage Municipality 42,236$92,900 $697$2,323$1,292 $51,680 40%$27,870$24.85 $16.892.5 1.5$878

Bethel Census Area 1,623$54,600 $410$1,365$1,369 $54,760 37%$16,380$26.33 $20.242.7 1.3$1,052

Bristol Bay Borough 182$99,000 $743$2,475$1,194 $47,760 46%$29,700$22.96 $15.982.4 1.4$831

Denali Borough 201101,700 $763$2,543$1,090 $43,600 28%$30,510$20.96 $20.102.1 1.0$1,045

Dillingham Census Area 558$57,600 $432$1,440$1,092 $43,680 41%$17,280$21.00 $17.792.2 1.2$925

Fairbanks North Star Borough 14,868$93,800 $704$2,345$1,230 $49,200 41%$28,140$23.65 $15.472.4 1.5$805

Haines Borough 353$70,000 $525$1,750$895 $35,800 31%$21,000$17.21 $10.811.8 1.6$562

Hoonah-Angoon Census Area 345$61,600 $462$1,540$786 $31,440 38%$18,480$15.12 $9.441.6 1.6$491

Juneau City and Borough 4,389$97,600 $732$2,440$1,313 $52,520 36%$29,280$25.25 $13.242.6 1.9$689

Kenai Peninsula Borough 5,789$77,700 $583$1,943$996 $39,840 27%$23,310$19.15 $14.672.0 1.3$763

Ketchikan Gateway Borough 2,320$87,900 $659$2,198$1,193 $47,720 44%$26,370$22.94 $14.172.4 1.6$737Kodiak Island Borough 1,836$75,800 $569$1,895$958 $38,320 40%$22,740$18.42 $12.971.9 1.4$674

Lake and Peninsula Borough 180$55,200 $414$1,380$846 $33,840 35%$16,560$16.27 $23.121.7 0.7$1,202

Matanuska-Susitna Borough 7,396$85,700 $643$2,143$1,012 $40,480 24%$25,710$19.46 $11.022.0 1.8$573

Nome Census Area 1,258$48,300 $362$1,208$1,376 $55,040 44%$14,490$26.46 $21.192.7 1.2$1,102

North Slope Borough 1,007$84,700 $635$2,118$885 $35,400 51%$25,410$17.02 $46.161.7 0.4$2,400

Northwest Arctic Borough 857$59,400 $446$1,485$1,166 $46,640 45%$17,820$22.42 $38.402.3 0.6$1,997

Metropolitan Areas

Anchorage HMFA $92,900 $697$2,323$1,292 $51,680 40%$27,870$24.85 $16.892.5 1.5$87842,236

Fairbanks MSA $93,800 $704$2,345$1,230 $49,200 41%$28,140$23.65 $15.472.4 1.5$80514,868

Matanuska-Susitna Borough HMFA $85,700 $643$2,143$1,012 $40,480 24%$25,710$19.46 $11.022.0 1.8$5737,396


RENTER HOUSEHOLDS



(2010-2014)


2BRFMR


2 BR FMRAnnualAMI4


at AMI5

Monthlyrent


Monthlyrent

affordableat mean

renter wage

HOUSING COSTS


(2016)


2 BR FMR3


FMR2



FY16 HOUSING WAGE

30%of AMI

8/16/2019 Out of Reach 2016

29/264


Alaska

Petersburg Census Area 456$87,100 $653$2,178$1,028 $41,120 33%$26,130$19.77 $10.422.0 1.9$542

Prince of Wales-Hyder Census Area 716$54,700 $410$1,368$931 $37,240 30%$16,410$17.90 $14.341.8 1.2$746

Sitka City and Borough 1,488$80,100 $601$2,003$1,203 $48,120 42%$24,030$23.13 $13.662.4 1.7$710

Skagway Municipality 167$79,500 $596$1,988$1,250 $50,000 43%$23,850$24.04 $14.702.5 1.6$764

Southeast Fairbanks Census Area 690$68,100 $511$1,703$1,171 $46,840 32%$20,430$22.52 $27.862.3 0.8$1,449

Valdez-Cordova Census Area 879$90,800 $681$2,270$1,139 $45,560 27%$27,240$21.90 $15.072.2 1.5$784

Wade Hampton Census Area 418$41,800 $314$1,045$883 $35,320 25%$12,540$16.98 $11.551.7 1.5$600

Wrangell City and Borough 326$56,700 $425$1,418$856 $34,240 28%$17,010$16.46 $9.301.7 1.8$484

Yakutat City and Borough 140$83,000 $623$2,075$996 $39,840 53%$24,900$19.15 $11.352.0 1.7$590

Yukon-Koyukuk Census Area 615$48,100 $361$1,203$776 $31,040 30%$14,430$14.92 $21.011.5 0.7$1,093


RENTER HOUSEHOLDS




2 BRFMR


2 BR FMRAnnualAMI4


at AMI5

Monthlyrent


Monthlyrent

affordableat mean

renter wage

HOUSING COSTS


(2016)


2 BR FMR3


FMR2



FY16 HOUSING WAGE

30%of AMI

8/16/2019 Out of Reach 2016

30/264

$893

$1,488

$794

$446

$419

$220

Two bedroom FMR






$0 $500 $1,000 $1,500 $2,000



PERHOUR

ARIZONAIn Arizona, the Fair Market Rent (FMR) for a two-bedroom apartment is $893. In order to affordthis level of rent and utilities — without paying more than 30% of income on housing — a

household must earn $2,977 monthly or $35,726 annually. Assuming a 40-hour work week, 52weeks per year, this level of income translates into an hourly Housing Wage of:

STATERANKING

24*


Minimum Wage $8.05 Coconino County $21.83

Average Renter Wage $15.28 Maricopa County $17.58

2-Bedroom Housing Wage $17.18 Pinal County $17.58

Number of Renter Households 873,952 Apache County $16.63

Percen

out of reach 2016

Documents